TIDMIDEA
RNS Number : 5896C
Ideagen PLC
23 January 2018
23 January 2018
Ideagen PLC
("Ideagen" or the "Group")
Unaudited Interim Results for the six months ended 31 October
2017
Ideagen PLC (AIM: IDEA), a leading supplier of Information
Management software to highly regulated industries, announces its
unaudited interim results for the six months ended 31 October
2017.
Financial Highlights
-- Revenue increased by 43% to GBP17.2 million (2016: GBP12.0 million)
o Underlying organic revenue growth of 13%
o New bookings increased by 78% to GBP10.8m (2016 : GBP6.1m)
-- Recurring revenues increased by 60% to GBP10.8 million (2016 : GBP6.7 million)
-- SaaS revenues increased by 122% to GBP3.9m (2016 : GBP1.7m)
-- Recurring revenues represent 63% of total revenue (2016: 56%)
-- Adjusted diluted EPS** increased by 38% to 1.73p (2016: 1.25p)
-- Adjusted EBITDA* increased by 52% to GBP4.7 million (2016: GBP3.1 million)
-- Adjusted PBT** increased by 56% to GBP4.1 million (2016: GBP2.6 million)
-- Cash generated by operations of GBP3.7 million (2016: GBP3.0
million) before a payment to HMRC of GBP0.8 million received from
option holders in the prior year for taxes on options exercised
-- Net cash of GBP5.9 million (30 April 2017: GBP4.2 million; 31 October 2016: GBP4.8 million)
-- 15% increase in interim dividend to 0.078p (2016: 0.068p)
*Before share based payments and exceptional items
**Before share based payments, amortisation of acquisition
intangibles and exceptional items
Operational Highlights
-- Robust growth across all GRC product areas
-- Acquisitions made in 2016-17 fully integrated and meeting expectations
-- Strong momentum in sales in the USA, Europe and Asia-Pacific Regions
-- 112 new logo customer wins - 70% outside of the UK
-- Further progress within cloud business
o 66 new logo SaaS customer wins
o Wins include Boston Scientific, Dun and Bradstreet, Roche and
RATP Group
-- 46 new logo on premise customer wins including Verizon, Hiscox, Siemens and US Navy
-- Strong customer retention - 96% maintenance and support contract renewal rate
-- Significant new business from the existing customer base including BAE, Danone and BDO
-- Expansion of Malaysian and Bulgarian R&D resources
David Hornsby, CEO of Ideagen, commented: "We are delighted to
report on another strong performance from the Group across all of
our vertical markets and geographies during the first half of the
year.
The Group has achieved growth both organically and from the
acquisitions made in the previous year as we continue to execute
against our proven strategy. We are particularly pleased with the
strong growth in our SaaS revenues and our sales execution and
momentum in the USA, Europe and Asia-Pacific regions.
Current trading remains robust and in line with management
expectations. The Board remain confident in the outlook for this
year and beyond
Enquiries:
Ideagen plc 01629 699100
David Hornsby, Chief Executive
Graeme Spenceley, Finance Director
Joe O'Brien, Investor Relations
finnCap Limited 020 7220 0500
Stuart Andrews/Henrik Persson/James
Thompson (Nomad)
Stephen Norcross (Corporate
Broking)
About Ideagen plc
Ideagen is a UK company quoted on the London Stock Exchange AIM
market (Ticker: IDEA.L).
Ideagen is a supplier of Information Management software with
operations in the UK, the United States and the Middle East. The
Company specialises in GRC (Governance, Risk and Compliance) and
Content and Clinical solutions with a primary focus on
organisations operating within highly regulated industries. With an
excellent portfolio of software products, Ideagen can provide
complete information lifecycle solutions that enable organisations
to reduce risk, meet their regulatory and compliance standards,
helping them to reduce costs and improve efficiency
The Group has a customer base of over 3,000 organisations using
the Ideagen of products, including many blue chip names such as BAE
Systems, Emirates, Shell and the European Central Bank as well as
150 hospitals in the UK and US.
For further information please visit www.ideagen.com
CHIEF EXECUTIVE'S REVIEW
Business Review
I am pleased to report on another excellent performance for the
six months ended 31 October 2017 combining overall organic revenue
growth of 13% together with a full period's contribution from the
acquisitions of Logen, Covalent, IPI and Pleasetech which were made
in the previous year. Our Governance Risk and Compliance (GRC)
business representing over 90% of Group revenue performed strongly
with 20% organic growth. The Content and Clinical business declined
by 29% driven by our decision to no longer bid for low margin
service based contracts within the UK Public Sector.
The Board believes the long term prospects for the Group are
positive. The Governance, Risk and Compliance (GRC) market
representing over 90% of Group revenue was, according to Gartner,
worth $4.4 billion globally in 2016 and is estimated to be growing
at 13% per annum. The Group's core expertise is in the development
and implementation of software tools that enable customers to
identify, assess and prioritise risk and to manage information in
line with rigorous regulations. Our customers are increasingly
required to take a holistic view of risk management, internal audit
and compliance, with many organisations at the beginning of the
adoption phase of high value enterprise-wide solutions.
The Group has a clear and proven strategy to grow the business
organically whilst continuing to identify and acquire businesses
that offer strong synergies in terms of product, customers and
geographical reach. The Board believes that the successful
execution on that strategy will continue to bring value to our
shareholders, employees and customers. The Group remains committed
to increasing its revenue and earnings visibility through the
transition to a SaaS and subscription based licence model and the
development of international markets, particularly the USA and Asia
Pacific.
Demand from all of the Group's key GRC verticals continues to be
robust, with new customer wins achieved across a range of
industries. The Group is focused on several key vertical markets
which are primarily Transport, Banking and Finance, Life Sciences,
Healthcare and Advanced Manufacturing. Each of our vertical areas
has performed well both in terms of winning new logos and expanding
the existing customer footprint through 'cross sell' and 'up sell'.
This has resulted in organic growth across our GRC business of 20%.
New customer wins in the period include Commerzbank, Dun and
Bradstreet, Siemens Transmission, Kerry Foods, mBank, Spirit of
Texas Bank, Verizon, RATP Group and Hong Kong Express. New
contracts from existing customers include BDO, PWC, Danone, Bae
Systems and Lockheed Martin.
The Group continues to benefit from a strong and growing base of
recurring revenues, which now represent 63% of total revenue (2016:
56%). Most of this growth is in respect of recurring SaaS revenues
which represented 22% (2016: 14%) of total revenues.
The Group has increased it's investment to accelerate a number
of product development and global sales initiatives in line with
our strong organic revenue growth. We view such investment as
important to the sustainable long term growth of the business.
Markets and Product Strategy
GRC
We have subject matter expertise and decades of experience in
our vertical markets and in our technology domains. These are as
follows:
GRC Domains:
-- Quality Management
-- Safety Management
-- Risk Management
-- Audit Management
-- Performance Management
Vertical markets:
-- Transport
-- Advanced Manufacturing
-- Life Sciences
-- Government
-- Healthcare
-- Financial Services
We develop and sell software products that satisfy our
customers' critical needs at the intersection of these domains and
markets. Thus, we primarily provide risk based quality and safety
management software to the transport, manufacturing, life sciences
and healthcare markets and risk based audit and performance
software to financial services, accounting firms and the public
sector.
Due to the horizontal nature of GRC, the Group can also supply
to other vertical markets, for example Oil and Gas and Construction
and it is likely that additional key vertical markets will evolve
over time.
Clinical Workflow
Ideagen also provides clinical workflow software solutions to
the UK NHS where trusts are seeking to modernise and transform
processes by digitising medical records. The primary goal of this
transformation is to improve patient outcomes and care quality
while also generating efficiency savings. The NHS is aiming to
implement widespread modernisation and digitisation of working
practices. Ideagen clinical workflow and hospital information
management solutions have been designed in close collaboration with
NHS customers to deliver innovation and improvements in quality,
performance and productivity. New business opportunities within the
NHS have been limited due to budget constraints which has resulted
in a decline in revenues over the past 3 years.
Acquisition Strategy
The Group made 4 acquisitions in the previous year each of which
are fully integrated into the Group and are performing well by
adding intellectual property, recurring revenues, vertical market
consolidation and technical expertise to the Group. They now form
part of our enlarged GRC business and now fit into the Group as
follows:
-- Covalent, a supplier of risk assurance and performance
management software to the Public Sector and Financial Services has
now been integrated with Pentana Audit and rebranded as Pentana
Performance providing a broader solution for Enterprise Risk
Management
-- IPI, a supplier of quality reporting software to the
Aerospace and Defence Industry has been rebranded and is now
marketed as a module within the Q-Pulse product range
-- Pleasetech's Document Review and Co-authoring software
PleaseReview remains a strong brand within the Group. PleaseReview
can be sold independently to enhance a prospective customer's
existing Information Management capability or as part of a broader
Ideagen GRC solution.
-- Logen, a reseller of "Ideagen Pentana" is now Ideagen
Bulgaria and providing a platform for the expansion of the Group's
Research and Development and Sales capability in Eastern
Europe.
The Group continues to be committed to a 'buy and build'
strategy and is in discussion with a number of potential
acquisition targets which the Board believe would enhance the Group
and support our ongoing growth strategy.
Current Trading & Outlook
The market for GRC management solutions remains fragmented and
the drivers are long term and highly strategic. Trading continues
to remain robust while a healthy pipeline reinforces confidence in
our forecasts.
We have been aware of the economic and political conditions in
the UK for some time and the Group has responded by developing a
strong and growing presence in a number of global markets. Our
success in winning new business together with our increasing levels
of recurring revenue and repeat business from our 3,000 strong
customer base, provides us with confidence in the future prospects
of the Group.
David Hornsby
Chief Executive Officer
FINANCIAL REVIEW
Revenue for the 6 months ended 31 October 2017 increased by 43%
to GBP17.2 million (2016: GBP12.0 million) which included strong
pro-forma organic revenue growth of 13%. This is calculated based
on a comparison with pro-forma revenue for 2016 of GBP15.2 million
which includes revenues for Covalent, IPI, PleaseTech and Logen as
if those businesses had been owned by the Group for the whole of
the comparative period.
New sales bookings increased by 78% to GBP10.8 million (2016:
GBP6.1 million). For SaaS based contracts, a booking includes 3
years of SaaS subscriptions and associated professional services
revenues. For on-premise based contracts, a booking includes a
perpetual licence, 1 year of maintenance and associated
professional services revenues.
Recurring revenues have grown strongly because of both the
continuing focus on our SaaS/Subscription-based products and the
acquisitions of businesses with high levels of recurring revenues.
In the 6 months to 31 October 2017, SaaS revenues were GBP3.9
million (2016: GBP1.7 million) representing 22% (2016: 14%) of
Group revenue. Total recurring revenues increased by 60% to GBP10.8
million (2016: GBP6.7 million) representing 63% (2016: 56%) of
overall revenues. Revenues are analysed by revenue stream in note
2.
The group provides software solutions in two areas; GRC and
Content and Clinical, although the Group is now almost entirely
focused on GRC products after further resources were re-deployed
from Content and Clinical to GRC to address the wider and more
profitable opportunities available in the GRC market. Revenues from
GRC products increased to 91% (2016: 82%) of Group revenue in the 6
months to 31 October 2017 as a result of both the acquisitions of
GRC businesses in the prior year and strong pro-forma organic GRC
revenue growth of 20% in the period. As a result of the Group's
increased concentration of its resources on GRC products, Content
and Clinical revenues declined in the period to GBP1.6 million
(2016: GBP2.2 million) representing only 9% (2016: 82%) of total
Group revenue in the first half. The majority of this decline is
due to the Group's decision to no longer bid for contracts for the
design and build of web sites for the UK public sector which
represented lower margin, service based business for the Group.
Adjusted EBITDA increased by 52% to GBP4.7 million (2016: GBP3.1
million). The adjusted EBITDA margin improved to 27.5% (2016:
25.8%) resulting from the gearing effect of strongly growing
revenues while maintaining control of costs. Revenues are
seasonally biased towards the second half of the year thereby
resulting in higher adjusted EBITDA margins in the second half and
for the year as a whole.
The Group has significant intangible assets from the
acquisitions it has made. The amortisation of these acquired
intangibles of GBP2.9 million (2016: GBP2.0 million) represents the
majority of the total depreciation and amortisation charge for the
period of GBP3.5 million (2016: GBP2.4 million). The amortisation
of development costs amounted to GBP0.5 million (2016: GBP0.4
million). The share-based payment charge of GBP0.4 million (2016:
GBP0.5 million) relates to the group's equity-settled share option
schemes including the group's Long Term Incentive Plan and the
Group's share incentive plan for employees.
The adjusted group tax charge was GBP0.5 million (2016: GBP0.3
million) and is analysed in note 5. This has been adjusted to
exclude the deferred taxation credits associated with the
amortisation of acquired intangibles and share-based payment
charges. The adjusted group tax charge represents 12% (2016: 12%)
of adjusted PBT of GBP4.1 million (2016: GBP2.6 million) which is
also analysed in note 5. The Group continues to benefit from the
availability of R&D taxation credits.
As a result of the above, adjusted diluted earnings per share
increased by 38% to 1.73p (2016: 1.25p). Details of the calculation
of adjusted earnings per share are provided in note 3.
The Group's financial position has continued to strengthen with
net assets increasing to GBP48.0 million (30 April 2017: GBP46.4
million; 31 October 2016: GBP34.7 million). Net current liabilities
were reduced to GBP1.6m (30 April 2017: GBP5.2 million) due to the
generation of cash which was largely utilised to repay short-term
bank borrowings and some trade and other payables. Current
liabilities includes GBP11.2 million (30 April 2017: GBP11.6
million) in respect of revenue invoiced on maintenance and support
and SaaS contracts which has been deferred to future periods in
accordance with the group's accounting policies. This is not a cash
liability.
The level of intangible assets decreased to GBP54.1 million (30
April 2017: GBP56.4 million) mainly through the effects of
amortisation and the capitalisation of GBP1.1 million (2016:
GBP0.93 million) of R&D development costs during the period
which represented 6.4% (2016: 7.7%) of total revenues.
Cash generated by operations was GBP3.7 million (2016: GBP3.0
million) before taking into account a payment to HMRC of GBP0.8
million which had been received from option holders in the prior
year to cover their payroll taxes on options exercised by them
close to the end of the financial year, as previously noted in our
2017 preliminary announcement. This represents 79% (2016: 96%) of
adjusted EBITDA and follows a very strong cash generation metric of
over 100% for the year to April 2017 and an unusually high metric
in the first half of 2016. Cash generation in the Group is slightly
biased towards the second half due to the renewal pattern of our
recurring revenue contracts. Free cash flow adjusted for the GBP0.8
million payment noted above, amounted to GBP2.0 million (2016:
GBP1.8 million) representing 43% (2016: 59%) of adjusted EBITDA.
The group ended the period with net cash balances of GBP5.9 million
(30 April 2017: GBP4.2m).
Dividend
The Board proposes to increase the interim dividend by 15% to
0.078 pence per share (2016: 0.068 pence per share) payable on 20th
March 2018 to shareholders on the register on 2nd March 2018. The
corresponding ex-dividend date is 1(st) March 2018.
Graeme Spenceley
Chief Financial Officer
Ideagen plc
Group Statement of Comprehensive Income for the six months ended
31 October 2017
Six months Six months
ended ended
31 October 31 October
2017 2016
GBP'000 GBP'000
Revenue (note 2) 17,167 12,024
Cost of sales (1,654) (1,436)
Gross profit 15,513 10,588
Operating costs (10,799) (7,481)
----------- -----------
Profit from operating activities
before depreciation, amortisation,
share-based payment charges and
exceptional items 4,714 3,107
Depreciation and amortisation (3,523) (2,446)
Share-based payment charges (414) (509)
Costs of acquiring businesses - (176)
----------- -----------
Profit/(loss) from operating activities 777 (24)
Movement in the fair value of contingent
consideration (4) -
Finance costs (19) -
----------- -----------
Profit/(loss) before taxation 754 (24)
Taxation credit (note 4) 92 26
----------- -----------
Profit for the period 846 2
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss:
Exchange differences on translating
foreign operations (101) 380
Corporation tax on exercise of
options 93 76
Total comprehensive income for
the period attributable to the
owners of the parent company 838 458
=========== ===========
Earnings per share (note 3) Pence Pence
Basic 0.44 0.00
Diluted 0.42 0.00
Ideagen plc
Group Statement of Financial Position at 31 October 2017
31 October 30 April 31 October
2017 2017 2016
GBP'000 GBP'000 GBP'000
Assets and liabilities
Non-current assets
Intangible assets 54,149 56,427 36,887
Property, plant and equipment 628 583 445
Deferred income tax assets 1,134 1,348 777
----------- --------- -----------
55,911 58,358 38,109
----------- --------- -----------
Current assets
Inventories 10 10 16
Trade and other receivables 11,008 10,971 8,941
Current income tax recoverable - 27 -
Cash and cash equivalents 5,861 6,205 4,817
----------- --------- -----------
16,879 17,213 13,774
----------- --------- -----------
Current liabilities
Trade and other payables 3,453 5,115 3,154
Contingent consideration
on business combinations 2,000 2,054 -
Current income tax liabilities 145 - 94
Short term borrowings - 2,000 -
Deferred revenue 11,212 11,609 7,686
Deferred consideration
on business combinations 1,640 1,640 1,623
----------- --------- -----------
18,450 22,418 12,557
----------- --------- -----------
Non-current liabilities
Deferred consideration
on business combinations 460 460 -
Deferred income tax liabilities 5,836 6,274 4,587
----------- --------- -----------
6,296 6,734 4,587
----------- --------- -----------
Net assets 48,044 46,419 34,739
=========== ========= ===========
Ideagen plc
Group Statement of Financial Position at 31 October 2017
(continued)
31 October 30 April 31 October
2017 2017 2016
GBP'000 GBP'000 GBP'000
Equity
Issued share capital 2,000 1,981 1,815
Share premium 33,879 33,405 23,766
Merger reserve 1,658 1,658 1,167
Share-based payments reserve 1,225 961 1,138
Retained earnings 9,050 8,081 6,392
Foreign currency translation
reserve 232 333 461
Equity attributable to
owners of the parent 48,044 46,419 34,739
=========== ========= ===========
Ideagen plc
Group Statement of Cash Flows for the six months ended 31
October 2017
Six months Six months
ended 31 ended 31
October October
2017 2016
GBP'000 GBP'000
Cash flows from operating activities
Profit for the period 846 2
Depreciation of property, plant
and equipment 141 107
Amortisation of intangible non-current
assets 3,382 2,339
Business acquisition costs in
profit or loss - 176
Share-based payment charges
in profit or loss 414 509
Movement in fair value of contingent
consideration 4 -
Finance costs recognised in
profit or loss 19 -
Taxation credit recognised in
profit or loss (92) (26)
Decrease in inventories - 17
Increase in trade and other
receivables (139) (108)
(Decrease)/increase in trade
and other payables (1,285) 194
Decrease in deferred revenue (378) (232)
---------- ----------
Cash generated by operations 2,912 2,978
Finance costs paid (19) -
Income tax repaid 11 42
Employer's national insurance
paid on share-based payments (238) -
Business acquisition costs paid (135) (164)
---------- ----------
Net cash generated by operating
activities 2,531 2,856
---------- ----------
Cash flows from investing activities
Net cash outflow on acquisition
of businesses net of cash acquired - (3,657)
Payments of contingent consideration
on business combination (57) -
Payments for development costs (1,104) (932)
Payments for property, plant
and equipment (185) (90)
Net cash used by investing activities (1,346) (4,679)
---------- ----------
Cash flows from financing activities
Repayment of short term borrowings (2,000) -
Proceeds from issue of shares
under share option scheme 471 193
Proceeds from issue of shares
under share incentive plan 22 -
Net cash (used)/generated by
financing activities (1,507) 193
---------- ----------
Net decrease in cash and cash
equivalents during the period (322) (1,630)
Cash and cash equivalents at
the beginning of the period 6,205 6,317
Effect of exchange rate changes
on cash balances held in foreign
currencies (22) 130
Cash and cash equivalents at
the end of the period 5,861 4,817
---------- ----------
Ideagen plc: Group Statement of Changes in Equity for the six
months ended 31 October 2017
Share Share Merger Share-based Retained Foreign Total
capital premium reserve payments earnings currency attributable
reserve translation to owners
reserve of the
parent
-------- -------- --------- ----------- --------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 May 2017 1,981 33,405 1,658 961 8,081 333 46,419
Shares issued under
share option
scheme 14 457 - - - - 471
Shares issued under
share incentive
plan 5 17 - - - - 22
Share-based payments - - - 414 - - 414
Transfer on exercise
of share
options - - - (150) 150 - -
Taxation on
share-based payments
in equity - - - - (120) - (120)
Total transactions
with owners
recognised directly
in equity 19 474 - 264 30 - 787
-------- -------- --------- ----------- --------- ------------ -------------
Profit for the period - - - - 846 - 846
Other comprehensive
income
for the period - - - - 93 (101) (8)
-------- -------- --------- ----------- --------- ------------ -------------
Total comprehensive
income
for the period - - - - 939 (101) 838
-------- -------- --------- ----------- --------- ------------ -------------
Balance at 31 October
2017 2,000 33,879 1,658 1,225 9,050 232 48,044
======== ======== ========= =========== ========= ============ =============
Ideagen plc: Group Statement of Changes in Equity for the six
months ended 31 October 2016
Share Share Merger Share-based Retained Foreign Total
capital premium reserve payments earnings currency attributable
reserve translation to owners
reserve of the
parent
-------- -------- --------- ----------- --------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 May 2016 1,790 23,598 1,167 1,482 5,565 81 33,683
Shares issued under
share option
scheme 25 168 - - - - 193
Share-based payments - - - 403 - - 403
Transfer on exercise
of share
options - - - (747) 747 - -
Taxation on
share-based payments
in equity - - - - 2 - 2
Total transactions
with owners
recognised directly
in equity 25 168 - (344) 749 - 598
-------- -------- --------- ----------- --------- ------------ -------------
Profit for the period - - - - 2 - 2
Other comprehensive
income
for the period - - - - 76 380 456
-------- -------- --------- ----------- --------- ------------ -------------
Total comprehensive
income
for the period - - - - 78 380 458
-------- -------- --------- ----------- --------- ------------ -------------
Balance at 31 October
2016 1,815 23,766 1,167 1,138 6,392 461 34,739
======== ======== ========= =========== ========= ============ =============
Ideagen plc: Group Statement of Changes in Equity for the year
ended 30 April 2017
Share Share Merger Share-based Retained Foreign Total
capital premium reserve payments earnings currency attributable
reserve translation to owners
reserve of the
parent
-------- -------- -------- ----------- --------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 May 2016 1,790 23,598 1,167 1,482 5,565 81 33,683
Share placing 133 9,867 - - - - 10,000
Share placing issue
costs - (335) - - - - (335)
Shares issued on
acquisition
of business 9 - 491 - - - 500
Shares issued under
share option
scheme 49 275 - - - - 324
Share-based payments - - - 858 - - 858
Transfer on exercise of
share
options - - - (1,379) 1,379 - -
Taxation on share-based
payments
in equity - - - - 475 - 475
Equity dividends paid - - - - (346) - (346)
-------- -------- -------- ----------- --------- ------------ -------------
Total transactions with
owners
recognised directly in
equity 191 9,807 491 (521) 1,508 - 11,476
-------- -------- -------- ----------- --------- ------------ -------------
Profit for the period - - - - 731 - 731
Other comprehensive
income
for the period - - - - 277 252 529
-------- -------- -------- ----------- --------- ------------ -------------
Total comprehensive
income
for the period - - - - 1,008 252 1,260
-------- -------- -------- ----------- --------- ------------ -------------
Balance at 30 April
2017 1,981 33,405 1,658 961 8,081 333 46,419
======== ======== ======== =========== ========= ============ =============
Ideagen plc
Notes to the interim financial information
1 Basis of information
The interim financial information for the 6 months ended 31
October 2017 and the six months ended 31 October 2016 included in
this announcement is unaudited. The financial information for the
year ended 30 April 2017 included in this announcement does not
constitute the annual report and accounts of the Company for the
year ended 30 April 2017 within the meaning of section 434 of the
Companies Act 2006. The audited annual report and financial
statements of the Company for the year ended 30 April 2017 has been
filed with the Registrar of Companies. The auditor's report on
those financial statements was unqualified and did not contain any
statement under section 498 (2) or (3) of the Companies Act 2006
and did not include references to any matters to which the auditor
drew attention by way of emphasis. Consistent accounting policies
have been applied in the preparation of this information.
2 Revenue
An analysis of the Group's revenue is given below.
31 October 31 October
2017 2016
GBP'000 GBP'000
Recurring SaaS/subscription
software revenues 3,854 1,734
Recurring support & maintenance 6,919 5,015
----------- -----------
Total recurring revenues 10,773 6,749
Software - new licence revenues 3,587 2,415
Professional services 2,515 2,682
Other 292 178
Total revenue 17,167 12,024
----------- -----------
3 Earnings per share information
Basic earnings per share is calculated by dividing the profit
for the period attributable to the owners of the Company
('Earnings') by the weighted average number of ordinary shares
outstanding during the period. Diluted earnings per share is
calculated by dividing Earnings by the weighted-average number of
ordinary shares outstanding during the period as adjusted for the
effect of all potentially dilutive shares, including share
options.
In order to better demonstrate the performance of the Company,
adjusted earnings per share calculations have also been presented
which take into account items typically adjusted for by users of
financial statements. The adjusted earnings and earnings per share
information are shown below.
Earnings per share information Six months Six months
ended ended
31 October 31 October
2017 2016
GBP'000 GBP'000
Profit for the period (Earnings) 846 2
Adjustments:
Share-based payment charges 414 509
Deferred taxation on share-based
payment charges (40) 54
Costs of acquiring businesses - 176
Movement in fair value of contingent 4 -
consideration
Amortisation of acquired intangibles 2,927 1,973
Deferred taxation on amortisation
of acquired intangibles (556) (393)
------------ ------------
Adjusted earnings 3,595 2,321
Weighted average number of shares 198,459,844 179,705,928
Diluted weighted average number
of shares 208,016,057 186,201,454
Basic earnings per share 0.44 pence 0.00 pence
Diluted earnings per share 0.42 pence 0.00 pence
Basic adjusted earnings per 1.81 pence 1.29 pence
share
Diluted adjusted earnings per 1.73 pence 1.25 pence
share
4 Taxation
Further information on the taxation charge in the Statement of
Comprehensive Income is as follows:
Six months Six months
ended ended
31 October 31 October
2017 2016
GBP'000 GBP'000
Income taxation charge 253 145
Deferred tax credit on amortisation
of acquisition intangibles (556) (393)
Deferred tax on share-based payment
charges (40) 54
Deferred tax charge on utilisation
of tax losses 133 48
Deferred tax charge on development
costs 118 120
Total deferred income taxation
credit (345) (171)
Total taxation credit (92) (26)
----------- -----------
5 Adjusted profit before taxation and adjusted taxation charge
6 months 6 months
ended ended
31 October 31 October
2017 2016
GBP'000 GBP'000
Adjusted earnings (note 3) 3,595 2,321
Adjusted taxation charge (below) 504 313
----------- -----------
Adjusted profit before taxation 4,099 2,634
----------- -----------
Taxation in the Statement of
Comprehensive Income (92) (26)
Add back:
Deferred taxation credit on amortisation
of acquisition intangibles (note
4) 556 393
Deferred taxation on share based
payment charges 40 (54)
----------- -----------
Adjusted taxation charge 504 313
----------- -----------
Adjusted taxation charge based
on adjusted profit before taxation 12.3% 11.9%
----------- -----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRGDBCUDBGID
(END) Dow Jones Newswires
January 23, 2018 02:00 ET (07:00 GMT)
Ideagen (LSE:IDEA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ideagen (LSE:IDEA)
Historical Stock Chart
From Apr 2023 to Apr 2024